IL Postcard

Alternative Visas for Long-term Stays

Date: 05/31/2007

June 1, 2007
Panama City, Panama

As we reported earlier this week, Panama has made a major change to its immigration policy. The tourist visa, which used to allow for a 90-day stay (with options to extend), will now allow just a 30-day stay. Local officials say that there will be an option to extend, but that this will be limited to one 30-day extension, for a total maximum stay of 60 days. After that, anyone on a tourist visa will have to exit the country. Whether tourists will be able to apply for an extension each time they visit remains to be clarified.

If you plan to stay in Panama for extended periods of time, you will need to consider other visa options. If you have a verifiable pension, you can apply for Panama’s pensionado program. The permanent pensioner visa can take as little as three months to obtain from time of filing, and entitles pensioners to discounts including 30% off local transportation, 25% off airline tickets, 30% to 50% off hotel stays, 20% off medical consultations, and 15% off hospital bills (when insurance is not applied).

Applicants must show proof of pension from an official pension program or private corporate plan. If you plan to buy property in Panama, however, you may want to consider the Person of Means Visa. Basic requirements for this visa stipulate that you invest at least $200,000 here. This can be done via a $200,000 property purchase (sans mortgage) or via a two-year fixed-term deposit at a local bank)…or a combination of the two (the split is $80,000/$120,000, respectively). The property you buy and/or your bank deposit must be in your personal name and not under a corporation or foundation.

A less expensive option for investors is the Forestry Investor Visa. You can become either a Small Forestry Investor or a Large Forestry Investor with a minimum approved reforested land purchase of $40,000 or $80,000, respectively. The requirements for either option include, but are not limited to: an application submitted via a Panama-registered lawyer; authenticated foreign-issued police record (the authentication is usually done through a Panamanian Consulate); and a Panama-issued health certificate (a local attorney can assist you with this).

The difference between the two options? Small Forestry Investors are allowed to stay in Panama with one-year renewable immigrant visas and may apply for permanent residency or citizenship on their fifth year. Large forestry investors are allowed to apply for permanent residency immediately after the first immigrant visa card expires, and may apply for citizenship five years after their initial application.

Keep in mind that both the Person of Means Visa and the Large Forestry Investor Visa are Immigrant Visas. If your application is accepted, you will receive a provisional one-year visa. At the end of the year, you must file a petition for permanent residence (five years later, you can apply for Panamanian citizenship if you comply with the requirements for this). The citizenship process can be very lengthy, as immigration receives many such petitions.

Panama offers many different visa alternatives; those listed above represent just a few of the more popular options. If you are planning on starting a business here, there is a different set of options, including the Investor’s Visa (which stipulates, among other things, a minimum investment of $150,000) and the Small Business Investor Visa (requirements include a minimum investment of $40,000). Keep in mind that certain types of business—such as retail—are restricted to Panamanian ownership. To obtain an Investor’s Visa, you will have to research options open to non-nationals. Also, both investor’s visas require, among other things, that you hire a minimum of three permanent Panamanian employees.

Important new information about the Forestry Investor Visa: You can now use your IRA funds to invest in forestry projects in Panama and qualify for the Forestry Investor Visas. (You can also use IRA funds to invest in other types of Panama real estate, but this will not qualify you for a resident visa, as when you buy with an IRA the property must be owned by a corporation or foundation owned by the IRA and not in your personal name.)

For more information about the forestry investor visa, contact Robert Kroesen of United Nature at Robert@unitednature.com. For information about using your IRA to invest in a forestry project or in Panama real estate, contact Rich Luchsinger of Sovereign International Asset Management at rluchsinger@worldwideplanning.com. You can also contact attorney Rainelda Mata-Kelly at rmk@mata-kelly.com—she can help with any of your immigration questions.

Best regards,

Jessica Ramesch
Editor, Panama Insider

P.S. Visas are just one facet you’ll have to consider if you move your home, family, or business to Panama. Each month, Panama Insider researches Panama’s up-and-coming regions and reports on issues important to prospective expats like you. Not a subscriber? Find out all you need to know here.